Dumped East West Link to cost $420M

Victorians are paying $420 million for the state government to walk away from the East West Link road project it dumped as part of an election promise.

A final agreement with the East West Link consortium has been reached, Treasurer Tim Pallas told reporters on Monday.

The cost to the state will be $339 million spent by the East West consortium on design and pre-construction expenses, and $81 million spent setting up a credit facility for the project, he said.

The opposition insists the true cost to taxpayers is up to $881 million, and says the costs continue to climb.

They estimate these costs include $200 million spent in land acquisitions, $176 million in project development such as drilling, soil testing, and engineering, legal and professional services.

Shadow treasurer Michael O'Brien, who signed a controversial side letter guaranteeing payout to the consortium if their project was abandoned, called the walk away costs a "monstrous" waste of public funds.

However, Mr Pallas said the East West Link project is now behind the government.